This does not mean that you have to log hours physically and maintain records of the same. Let s say you run a cr che for children in your basement, for x hours a day, every weekday. You may use the basement for personal use for the rest of the time, it does not matter; you are eligible to show the time used and claim deductions. If however, you were to use the basement only occasionally for babysitting, you could not claim it as an expense.
Now along with the basement you could well be using another room in your house where children could take a nap. Though the room is unlikely to be used all the time, you need to keep it available through the business day. This room therefore also qualifies as an expense head and is eligible to figure in your
deduction. All expenses related to the maintenance and upkeep of these rooms should figure in your expense list.
Keywords: Tax Deductions, Tax Savings, Tax Planning